DTT steps up in Czech Republic

By
Andrew Katolo

July 04, 2012

Three days after switching off its last analogue TV transmitters at the end of June 2012, the Czech Republic has made further progress with the roll-out of its DTT platform, launching additional multiplex 4 and gearing up for the launch of an on-demand service from Central European Media Enterprises (CME). Transmission company, Ceske Radiokomunikace, ended analogue terrestrial broadcast in the last two regions of the country--Jesenik and Zlin--at the end of June 2012. Immediately afterwards, Digital Broadcasting (DB) launched multiplex 4 with four TV channels: public CT HD, CT4 HD, CME-owned TV Nova HD, and TV Pohoda owned by DB. The multiplex covers 73.7 per cent of population (up from 23 per cent in January 2012 when DB took it over from Telefonica O2) and will be extended to 86 per cent in September 2012.

In addition to the new HD services, Czech DTT will make another step forward with launch of a CME-owned VOD service, Voyo, on Motive Television's technology platform Television Anytime Anywhere. According to a five-year contract, Motive Television will receive a monthly fee based on the number of Voyo DTT subscribers. The companies are intending to start the new service early 2013. CME is also planning to extend its Czech channel offer with the launch in July of a channel for men, Fanda. Voyo has already launched as an Internet service in Bulgaria, Croatia, Romania, Slovakia and Slovenia, where CME is also active. At the end of June 2012 it had 30,000 subscribers in the Czech Republic, with a 100,000 target for end 2012. The Czech launch is the first that will combine the offer with DTT and could signal the start of a wider hybrid roll-out. CME's major shareholder is Time Warner. In the beginning of July 2012 the company increased its shares in CME to 49.9 per cent.

The Czech Republic completed analogue switch-off smoothly, with multiplexes 1-3 covering nearly 100 per cent of homes and providing ten channels in total. All three multiplexes applied MPEG-2 compression, requiring - in favour of a smooth transition - cheaper set top boxes. Only multiplex 4 uses MPEG-4, enabling more channels and HD quality. The Voyo DTT service most likely will launch on multiplex 4, where there is still some capacity available. More capacity will also be freed with the likely switch off of CT HD and CT4 HD after 2012 Olympic Games.

Thanks to the successful roll-out of DTT, 30 per cent of Czech homes now use DTT on their primary, with a further 15 per cent on secondary TV sets. This relatively high primary DTT penetration is likely to decrease due to a high number of cable TV operators and four satellite TV players, some of which offer relatively cheap pay TV services, competing with DTT. But the high number of free DTT homes in the Czech Republic also presents a very attractive opportunityfor potential pay DTT operators to enter. Moreover, pay services should lower the churn on Czech DTT. On the other hand, much will depend on how CME plans to get enabled set-tops into homes. A Voyo-hybrid DTT service will likely require more advanced set top boxes than MPEG-2-enabled zappers which are now widely used by DTT homes in the country.

Tags:

Countries: Czech Republic
Companies: CME TV Nova CET 21 Voyo Motive Television Digital Broadcasting Ceske Radiokomunikace TV Pohoda Time Warner